Remember Steve Forbes’ pitch that your tax return should fit on the back of a postcard?
The Dutch divide income into three groupings, called Boxes.
Box 1 captures wages, with a progressive tax for each earnings band up to the maximum of 52% above 55,000 euro. Mortgage interest and savings plan contributions are deducted from this number.
Box 2 is a flat 25% tax on business income, including dividends and capital gains.
Box 3 is a flat 1.2% on the total value of savings and investment (not just interest).